Exchange and Clearing Information
no 38/11 Statkraft Energi AS given violation charge for breach of the Market Conduct Rules
Lysaker, 7 July 2011
NASDAQ OMX Oslo ASA (the exchange) has issued a violation charge to Statkraft Energi AS in the amount of NOK 400,000 for breach of the Market Conduct Rules.
NOK 250,000 of the violation charge is made conditional with reference to the reaction from Nord Pool Spot relating to the same incident.
On 27 October 2010, Statkraft Energi AS sent erroneous Elspot nominations to Nord Pool Spot. The nominations resulted in 4,000 MW too much sale in each hour at any given price in Norway for delivery on 28 October, which led to significant price movements both in the physical and the financial market. Market Surveillance has conducted extensive investigations following the incident and the Disciplinary Committee has made a recommendation to the board of the exchange. Please find attachment for the recommendation from the Disciplinary Committee (note: Danish language).
The exchange has concluded that the incident constitutes market manipulation and that Statkraft Energi AS has acted with negligence in respect of the technical error which caused the incident. The exchange has not found any evidence that Statkraft Energi AS acted with intent or had any illegitimate purpose by the erroneous nominations. The exchange also finds it mitigating that Statkraft Energi AS has proactively worked to explain the incident and has publicly admitted its error and made measures to prevent such errors from reoccurring.
The exchange has furthermore concluded that Statkraft Energi AS was in an insider position in relation to three exchange transactions entered into the Nordic power derivatives market, and that Statkraft Energi AS then has breached the prohibition against insider trading. The transactions were made after the erroneous nominations were discovered, but prior to the information about the errors becoming public.
The exchange deems that information about the errors was likely to have a significant effect on the prices. The transactions were furthermore likely to be beneficial to Statkraft Energi AS in light of the price effect of the inside information.
Nord Pool Spot has also issued a violation charge for market manipulation in relation to the same incident. Information from Nord Pool Spot can be found here.
For further information, please contact NASDAQ OMX Commodities:
Geir Reigstad, Senior Vice President, phone +47 6710 8410/+47 9084 6735
Sara Aadnesen, Director Communication, phone +47 6752 8080/+47 9060 0759
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